(Reuters) – A group of people and entities have filed a class action lawsuit against Credit Suisse, claiming that the Swiss bank misled investors over business deals related to Russian oligarchs, said law firm Pomerantz LLP.
Credit Suisse did not comment when contacted by Reuters.
The lawsuit, which was filed in a New York district court, is on behalf of individuals and entities that acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, Pomerantz said in a statement issued late Friday.
“The complaint alleges that throughout the class period, the defendants made materially false and misleading statements about the company’s operations, operations and compliance policy,”; Pomerantz said in the statement.
The law firm claimed shortcomings in the disclosure of a securitization transaction. It quoted in its statement a Financial Times article from February in which the newspaper reported that Credit Suisse had securitized a portfolio of loans linked to its richest customers’ yachts and private jet plan, in an unusual use of derivatives to remove the risks associated with lending to the ultra-rich oligarchs and entrepreneurs.
The Financial Times said after the publication of its article, Credit Suisse said in a statement that the transaction “priced in line with other significant risk transactions, offered competitive investment and hedging terms for our professional investor clients while increasing the bank’s capital flexibility.”
The lawsuit also referred to a request from US lawmakers in March that Credit Suisse submit documents related to the financing of yachts and private jets owned by potentially sanctioned individuals.
Credit Suisse stopped conducting new business in Russia after the invasion of Ukraine on February 24, the Swiss bank said on March 28 in an internal document seen by Reuters.
Credit Suisse, which reported a loss for the first quarter last week, has suffered a series of costly hits and a series of lawsuits that it has described as older cases.